


Ask the community...
If your bonus was $4,200 and you got $2,400 after taxes, that actually sounds about right. Remember that withholding includes: - Federal income tax (22% for supplemental wages) - Social Security (6.2%) - Medicare (1.45%) - State income tax (varies by state, but often 5-9%) - Local taxes in some areas - Any retirement contributions that come out automatically So hitting 43% total withholding is unfortunately pretty normal. The good news is you might get some back when you file, especially if you're in a tax bracket lower than 22%.
Thanks for breaking that down! My state tax is about 6% and I do have a 5% 401k contribution that's automatic on all my income. When you add it all up, I guess it does get close to that 43%. Do you know if there's any way to adjust withholding specifically for bonuses? Or am I just stuck with this high withholding rate?
Unfortunately, you generally can't adjust withholding specifically for bonuses. The IRS rules for supplemental wages are pretty rigid - employers must withhold at either the flat 22% rate or use the aggregate method. Your best option is to adjust your W-4 withholding on your regular paychecks to compensate if you're consistently getting large bonuses. But be careful not to underwithhold too much or you could face penalties. The IRS withholding calculator can help you find the right balance.
I remember when I first started getting bonuses and was shocked at the withholding too! One trick I learned: if you know a bonus is coming, temporarily increase your 401k contribution to the max for just that pay period. The bonus gets diverted to retirement pre-tax, and you avoid the heavy withholding. Then you can switch your contribution back to normal afterward. It's a nice way to boost retirement savings and avoid the tax shock. Just make sure you're not depending on that bonus cash for immediate expenses if you do this!
Pro tip: If you used direct deposit, check your bank account directly instead of just relying on the Where's My Refund tool. Sometimes the money gets deposited before the tool updates. Happened to me last year - I was checking the tool daily while the money was already sitting in my account for 3 days!
This happened to me too! I was freaking out because the status was stuck on "return received" for weeks, then randomly checked my bank account and boom - full refund was there. The IRS tracking system can definitely lag behind the actual deposit.
Exactly! The IRS systems don't always communicate with each other in real-time. The processing department might release your refund while the status update for the tracking tool is queued in a different system. Another thing to check is whether you have any past-due federal or state debts. Things like unpaid student loans, child support, or state taxes can result in your refund being offset (reduced) or delayed. The Where's My Refund tool doesn't always show this information clearly.
Did you check both the IRS website AND the IRS2Go app? Sometimes one updates before the other. Also make sure ur entering the EXACT info from ur return - even a dollar off will give u the "information can't be found" message.
this happened to my brother last year and he ended up getting a notice from the irs about 2 weeks later saying the payment didnt go thru. they gave him like 10 days to fix it before penalties kicked in. make sure ur checking ur mail everyday!!
Do you know if he got the notice by email or regular mail? I'm moving soon and worried I might miss something important from the IRS.
definitely regular mail. the irs almost never emails people (usually its a scam if you get an email claiming to be irs). my brother said the letter was pretty clear and gave him options for how to pay. just keep an eye on your mailbox! if ur moving make sure u fill out a change of address form with the irs - they have a specific form for it called 8822 i think. regular post office forwarding doesnt always work for irs stuff.
Make a payment through DirectPay NOW!!! I had this exact thing happen to me in 2021 and thought I'd just wait for the rejection notice. Big mistake. The incorrect bank account happened to be a valid account (just not mine) and the payment "went through" but then was returned a week later. By then I was past the deadline and got hit with penalties.
Former bank employee here. In my experience, what often happens is that banks "write off" debts internally but keep them on secondary collection systems or sell them to debt buyers. Then years later when they finally give up completely or hit some internal deadline, they issue the 1099-C. Document everything! Request your credit reports from 2008-2009 which might show when the account was charged off. Also, pull your IRS wage and income transcripts for those years to make sure they didn't already issue a 1099-C back then that maybe you missed. If you were truly insolvent in 2008 (which means your total debts exceeded your total assets), you probably wouldn't have owed tax even if they had properly issued the 1099-C then. Form 982 is your friend!
Thanks for this insight! I actually did pull my credit reports and they show the account was charged off in August 2008. Would bank statements showing they stopped attempting withdrawals in July 2008 also help my case? And how exactly do I file Form 982 for a tax year that's so far in the past?
Those bank statements from 2008 showing when they stopped attempting withdrawals would be EXCELLENT evidence! Keep those safe. And you don't need to file Form 982 for 2008 now - that's long past the statute of limitations. What you want to do is file Form 8082 with your current return explaining the inconsistency - that this debt was actually discharged in 2008 based on your documentation, not 2025. Then if you were insolvent at the time (in 2008), you can include Form 982 with your CURRENT return to show that even if the income was recognizable now (which it isn't), you would have qualified for the insolvency exclusion anyway. It's like a double layer of protection.
Chrysler Financial doesn't even exist anymore! They went bankrupt in 2009 and their assets were acquired by TD Auto Finance. So whoever sent you that 1099-C is probably some debt buyer who got your old account in a portfolio purchase. I'd definitely dispute this. I work in collections (yeah I know, everyone's favorite person) and we are required to issue 1099-Cs for the year in which we make the decision to stop collection activity, not years later when some database gets updated.
So who would he even contact at this point? TD Auto Finance for a debt that's 17 years old? Seems like a nightmare to track down.
Fatima Al-Rashid
Another option: did u do the work yourself or hire contractors? If you hired contractors and have receipts, maybe u can claim some home improvement credit? Check if any expenses were for energy efficiency or security improvements. Some states have specific credits too!
0 coins
Giovanni Rossi
ā¢This is partially incorrect. There aren't general "home improvement credits" at the federal level - only specific energy efficiency credits like for solar panels, energy efficient windows, etc. Regular improvements like painting or carpet cleaning wouldn't qualify.
0 coins
Aaliyah Jackson
Dealt with this exact situation last year! Here's what I learned: the expenses don't disappear, they just get handled differently. I tracked everything carefully and included it all when filing this year (2023 for me). The key is proper classification - some expenses become part of your basis (like improvements), others might qualify as immediate expenses once actively renting. Don't give up on the deductions!
0 coins